Publish Data on Gas flare fines Received, Provide Clarity on Investment for HCDT Reserve Fund- Stakeholders Tells NUPRC
By Ekemini Simon
Stakeholders drawn from Civil Society Organisations (CSOs) working in the extractive sector in Nigeria have called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to publish data on Gas Flare fines received annually by the commission.
The stakeholders also asked the commission to make public the data on how the funds received from gas flare fines are utilized for the environmental remediation of host communities as provided for in section 104 of the Petroleum Industry Act (PIA).
The demand was part of the communique endorsed the extractives focused clusters and select Civil Society Organisations working in the extractive sector in the Niger Delta at a One-Day Sector Learning and Sharing meeting organized by Palladium with support from the United States Agency for International Development (USAID) within the Strengthening Civic Advocacy and Local Engagement (SCALE) project held on Thursday, July 13, 2023, in Port Harcourt.
The stakeholders in their observation had noted that although Section 104 of the PIA provides that gas flaring fines should be used for environmental remediation of host communities, it has been noticed that there have not been any implementation till date. They added that there is no transparency in the receipt and utilisation of gas flare fines received by NUPRC since the Act came into force.
The stakeholders also called on NUPRC to provide clarity on the type of investments intended for the 20 percent Reserve Fund of the Host Communities Development Trust Fund (HCDTF) and the role of Host community structures in monitoring the administration of the Fund as provided for in the PIA.
The stakeholders asked NUPRC to simplify and disseminate information on the provisions of the HCDT regulations and processes for establishing the Trusts and Funds to enable host communities understand the roles of different stakeholders in the process and take relevant actions.
The stakeholders further called on NUPRC to provide regulations on divestment which will uphold the principle of restoration and justice for the Host Communities.
They urged NUPRC to align the PIA with the Extractive Industries Transparency Initiative (EITI) principles for civic participation, ensure timely publication of data on the operating expenses of settlors towards empowering Host Communities with relevant information to engage the HCDTF administration process.
Part of the communique reads ” NUPRC should review the PIA to absolve host communities of bearing the liability for damages to oil and gas facilities, where direct responsibility cannot be legally established and appropriately direct the responsibility to security agencies, like the Nigeria Security and Civil Defence Corps, who have a statutory mandate to protect oil and gas facilities.
” NUPRC should review the Petroleum Host Communities Development regulations to provide for a 10 percent minimum for women, youth and persons living with disabilities (PWDs) participation in community development plan processes and implementing structures (Board, Management and Advisory committees), towards promoting gender equality and social inclusion.
“Step-up awareness creation and advocacy capacity-building at the grassroot level on building up carbon credentials towards benefiting from carbon credit opportunities.
“Factor interests of all stakeholders in advocacy and propose more practical pathways for implementation of the energy transition plans/targets towards more effective advocacy outcomes. Mainstream transparency components in their advocacy engagements on the ETP.”
Meanwhile, the stakeholders equally called on Palladium to support engagements to strengthen knowledge of CSOs working within the extractive sector on the provisions of the PIA as they pertain to Host Communities socio-economic welfare and build public capacity to engage relevant processes.